Business / Companies
Government may revoke 31 coal licences held by local firms
05 Mar 2013 at 04:47hrs | Views
GOVERNMENT may revoke coal mining licences held by 31 local firms for suspected speculative purposes at the expense of genuine investors. Mines and Mining Development Deputy Minister Gift Chimanikire
yesterday told international media that the speculative holding of mining Special Grants was discouraging foreign investment inflows.
The delinquent companies have been summoned to the ministry, starting next week to explain the exploration work they have carried out.
"If we don't get any satisfactory answers we won't hesitate to withdraw those licences," Mr Chimanikire said. "Most of these people are holding onto these grants for speculative purposes."
Zimbabwe has over 40 different mineral occurrences and holds the world's second-largest deposits of platinum and ferrochrome, after South Africa. It also has gold, diamonds, nickel, copper and coal.
Zimbabwe obtains most of its 1 200 megawatts of power from hydropower and coal-fired generation, versus a demand of 2 100 megawatts, according to power utility Zesa Holdings.
"If we had more people using their grants, we would not have this problem of electricity shortages," said Mr Chimanikire.
He said some licencees had asked foreign investors for "other things and favours, resulting in the investors moving on to other countries where they are not asked to pay for extras or favours".
Mines and Mining Development Minister Obert Mpofu recently said Government would repossess all undeveloped mineral claims and parcel them out to other potential investors. The exercise will cut across the sector.
Government has already repossessed about 27 948 hectares of excess land held by the country's biggest platinum miner, Zimplats.
Last Friday, Government gazetted the 27 948 hectares of excess ground containing platinum reserves held by Zimplats for compulsory acquisition by the State in terms of the Mines and Minerals Act.
Minister Mpofu said Government's actions were based on the need to ensure that the mining sector's contribution fell in line with growth targets espoused in its five-year economic blueprint, the Medium Term Plan.
Mining is now at the core of the country's economic growth, followed by tourism, agriculture and manufacturing. But the sector has not contributed as much as Government thought it would over the years.
According to Minister Mpofu, Government has benefited more from the activities of diamond mining companies in Chiadzwa in the last six months than it has from the entire sector over the last decade.
yesterday told international media that the speculative holding of mining Special Grants was discouraging foreign investment inflows.
The delinquent companies have been summoned to the ministry, starting next week to explain the exploration work they have carried out.
"If we don't get any satisfactory answers we won't hesitate to withdraw those licences," Mr Chimanikire said. "Most of these people are holding onto these grants for speculative purposes."
Zimbabwe has over 40 different mineral occurrences and holds the world's second-largest deposits of platinum and ferrochrome, after South Africa. It also has gold, diamonds, nickel, copper and coal.
Zimbabwe obtains most of its 1 200 megawatts of power from hydropower and coal-fired generation, versus a demand of 2 100 megawatts, according to power utility Zesa Holdings.
"If we had more people using their grants, we would not have this problem of electricity shortages," said Mr Chimanikire.
He said some licencees had asked foreign investors for "other things and favours, resulting in the investors moving on to other countries where they are not asked to pay for extras or favours".
Mines and Mining Development Minister Obert Mpofu recently said Government would repossess all undeveloped mineral claims and parcel them out to other potential investors. The exercise will cut across the sector.
Government has already repossessed about 27 948 hectares of excess land held by the country's biggest platinum miner, Zimplats.
Last Friday, Government gazetted the 27 948 hectares of excess ground containing platinum reserves held by Zimplats for compulsory acquisition by the State in terms of the Mines and Minerals Act.
Minister Mpofu said Government's actions were based on the need to ensure that the mining sector's contribution fell in line with growth targets espoused in its five-year economic blueprint, the Medium Term Plan.
Mining is now at the core of the country's economic growth, followed by tourism, agriculture and manufacturing. But the sector has not contributed as much as Government thought it would over the years.
According to Minister Mpofu, Government has benefited more from the activities of diamond mining companies in Chiadzwa in the last six months than it has from the entire sector over the last decade.
Source - TH
